CFCM Ethics, Compliance & Risk Assessment 2 — Questions and Answers
Question 1: Under FAR 3.101, which principle is the foundation of the government's procurement integrity framework?
- Contractors must submit lowest possible bids
- All procurement transactions shall be conducted in a manner above reproach (Correct answer)
- Contracting officers must rotate assignments every two years
- Source selection must be completed within 90 days
Correct answer: All procurement transactions shall be conducted in a manner above reproach
FAR 3.101 establishes that government business shall be conducted in a manner above reproach and with complete impartiality and preferential treatment for none.
Question 2: A contractor discovers a billing error that resulted in an overcharge to the government. Under FAR 52.203-13, what is the contractor's obligation?
- Report the error only if it exceeds $10,000
- Disclose the error to the contracting officer and make restitution (Correct answer)
- Correct the error internally without disclosure if self-detected
- Wait for the government audit to identify the overcharge
Correct answer: Disclose the error to the contracting officer and make restitution
FAR 52.203-13 requires contractors to disclose credible evidence of significant overpayments to the contracting officer and return any overcharge.
Question 3: Which federal law specifically prohibits offering gratuities to government officials in connection with a contract award or performance?
- Procurement Integrity Act
- Federal Acquisition Streamlining Act
- FAR 3.202 (Gratuities clause enforcement)
- 18 U.S.C. § 201 (Federal Bribery Statute) (Correct answer)
Correct answer: 18 U.S.C. § 201 (Federal Bribery Statute)
18 U.S.C. § 201 is the primary federal statute prohibiting bribery of public officials, including offering anything of value to influence official acts related to contracts.
Question 4: What is a 'Contractor Code of Business Ethics and Conduct' required by FAR 52.203-13 for contracts exceeding?
- $50,000 and more than 30 days performance period
- $100,000 with performance expected to exceed 6 months
- $5.5 million with performance expected to exceed 120 days (Correct answer)
- $1 million regardless of performance period
Correct answer: $5.5 million with performance expected to exceed 120 days
FAR 52.203-13 applies to contracts exceeding $5.5 million (as adjusted) with a performance period exceeding 120 days.
Question 5: When assessing past performance risk on a federal contract, which risk level is typically assigned when no relevant past performance information is available?
- High risk
- Moderate risk
- Low risk
- Unknown/neutral risk (Correct answer)
Correct answer: Unknown/neutral risk
FAR 15.305 indicates that when no past performance information is available, the offeror shall receive a neutral/unknown rating rather than a negative assessment.
Question 6: Under the False Claims Act (31 U.S.C. § 3729), what is the penalty per false claim submitted to the federal government?
- $1,000 to $5,000 plus treble damages
- $5,000 to $11,000 plus treble damages (Correct answer)
- $10,000 to $50,000 plus double damages
- $25,000 per claim plus actual damages
Correct answer: $5,000 to $11,000 plus treble damages
The False Claims Act imposes civil penalties of approximately $5,000 to $11,000 per false claim (adjusted for inflation) plus three times the amount of damages sustained by the government.
Question 7: A contracting officer's representative (COR) accepts a contractor's lunch invitation valued at $15. Under the Standards of Ethical Conduct (5 C.F.R. Part 2635), this is:
- Prohibited as any meal constitutes a gratuity
- Generally permitted as a non-cash item under $20
- Permitted only with supervisor written approval
- Prohibited because the COR has oversight responsibilities for the contractor (Correct answer)
Correct answer: Prohibited because the COR has oversight responsibilities for the contractor
Even though the gift is under $20, a COR with oversight authority over a contractor has a conflict of interest that makes accepting any gift from that contractor prohibited.
CFCM Ethics, Compliance & Risk Assessment 2
Under FAR 3.101, which principle is the foundation of the government's procurement integrity framework?